Contents and form of notification before disposition of collateral: general.

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(a) Except in a consumer-goods transaction, the following rules apply:

  1. The contents of a notification of disposition are sufficient if the notification:

  1. Describes the debtor and the secured party;

  2. Describes the collateral that is the subject of the intended disposition;

  3. States the method of intended disposition;

  4. States that the debtor is entitled to an accounting of the unpaid indebtedness andstates the charge, if any, for an accounting; and

  5. States the time and place of a public disposition or the time after which any otherdisposition is to be made.

  1. Whether the contents of a notification that lacks any of the information specified inparagraph (1) of this subsection (a) are nevertheless sufficient is a question of fact.

  2. The contents of a notification providing substantially the information specified inparagraph (1) of this subsection (a) are sufficient, even if the notification includes:

  1. Information not specified by said paragraph (1); or

  2. Minor errors that do not cause damages to a person who relies on the information.

  1. A particular phrasing of the notification is not required.

  2. The following form of notification and the form appearing in section 4-9-614 (3),when completed, each provides sufficient information:

NOTIFICATION OF DISPOSITION OF COLLATERAL

To: [Name of debtor, obligor, or other person to which the notification is sent]

From: [Name, address, and telephone number of secured party]

Name of Debtor(s): [Include only if debtor(s) are not an addressee]

[For a public disposition:]

We will sell [or lease or license, as applicable] the [describe collateral] [to the highest qualified bidder] in public as follows:

Day and Date: ____________________

Time: ____________________

Place: ____________________

[For a private disposition:]

We will sell [or lease or license, as applicable] the [describe collateral] privately sometime after [day and date].

You are entitled to an accounting of the unpaid indebtedness secured by the property that we intend to sell [or lease or license, as applicable] [for a charge of $__________]. You may request an accounting by calling us at [telephone number] or writing us at [address].

Source: L. 2001: Entire article R&RE, p. 1406, § 1, effective July 1.

Editor's note - Colorado legislative change: Colorado substituted the word "disposition" for the word "sale" in subsection (a)(1)(E) and substituted the phrase "cause damages to a person who relies on the information" for the phrase "seriously misleading" in subsection (a)(3)(B). Colorado added the phrase "or writing us at [address]" at the end of the notification form contained in subsection (a)(5).


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